Global Operations Management
Globalization strategies haves changed the face of international business. The Internet and technological advances have opened doors for smaller organization to participate in the global market. Today with all the advances in technology more companies have become more global in their commercial activities. Ease of access to new markets for supply and demand, faster and more reliable global transportation, greater levels of technical capability in developing countries has contributed to this event. However, competition has become a great challenge to the success of global business management but many companies are rising to these opportunities (Approaches to Global Business Managements, 2008).
One of the reason companies have become more competitive in the global business environment today is because they want to ...view middle of the document...
Colgate has grown into a multinational corporation known for its toothpaste and oral hygiene products. About half of Colgate’s sales come from rapidly growing markets in other countries. Over three quarters of the company’s revenues comes from outside the United States (Colgate-Palmolive Company, 2011). In 2010, Latin America represented Colgate’s single largest source of revenue and the company has maintained consistent positive sales growth in Asia and Africa as well. One of the strategies Colgate Company has used to maintain a steady growth in foreign markets, it is its continual rebranding. The company can convince customers to spend more in its products by releasing new twists on under established brands, like for example: Colgate Luminous Mint Twist toothpaste, Irish Spring Moisture Blast bar soap, Soft-soap Brand Pure Cashmere body wash, among others. They have also growth through external acquisitions that have help Colgate tap into new markets that the company itself has little or no experience in. Colgate has also taken advantage of emerging markets in Brazil, Russia, India and China as populations grow wealthier and consumers are becoming more sophisticated shoppers (Our Company, 2012). Colgate is delivering strong global growth by following a tightly defined strategy to increase market leadership positions for key products, such as toothpaste, toothbrushes, bar and liquid soaps, deodorants/antiperspirants, dishwashing detergents, household cleaners, fabric conditioners and specialty pet food.
Other international companies in the United States that demonstrate a global management approach to their operations are Johnson & Johnson, Coca Cola, Pepsi, Kellogg’s among others. All these companies have managed to expand their share markets in foreign countries to obtain higher revenues and have done successfully. Definitely, organizations with a globalization strategy have distinct competitive advantages over organizations that only compete in domestic markets.